Discount reaches insane levels, costing Canada millions of dollars daily.
The discount on Canadian oil (Western Canadian Select) compared to West Texas Intermediate has now reached absolutely absurd levels.
On October 12th, according to Oil Price dot com, the discount was more than $50 a barrel.
The price of West Texas Intermediate is $71.39
The price of Western Canadian Select is $15.97
As senior VP at Turner Investments Ryan Lewenza said to BNN Bloomberg, “It’s just infuriating losing millions of dollars every day when we don’t have to. Boy, do we have to get this pipeline built,” he said about the Trans Mountain pipeline.
Added Lewenza, “This all goes back to the pipelines. We’ve got a bunch of oil, we can’t ship it. And so Canadian and international investors are basically avoiding Canada, and so that’s going to leave a cloud over the energy sector until we can get [the Trans Mountain expansion] pipeline built.”
And as Jason Kenney pointed out on Twitter, imagine if Eastern Canadian industries (like Bombardier) were facing this devastating discount:
“It’s almost unfathomable how bad this situation has gotten. Imagine the reaction from the Ottawa Liberals if a similar phenomenon existed for Eastern Canadian industries!”
It's almost unfathomable how bad this situation has gotten. Imagine the reaction from the Ottawa Liberals if a similar phenomenon existed for Eastern Canadian industries! pic.twitter.com/yw5r8qxgq3
— Jason Kenney (@jkenney) October 12, 2018
Yet, when it’s Western Canada getting devastated, Trudeau not only does nothing, but he pushes legislation that will make pipeline approvals even less likely.
Justin Trudeau is playing a double-game, where he pretends to vaguely support the energy industry, while his actions show that he intends to slowly strangle the industry to death.
And Notley – who appointed far-left anti-oil extremists to important positions – and made the mistake of trusting Trudeau, has shown herself totally unable to defend the energy industry.
We can see that in the absurd price discount, we can see that in the pipelines Trudeau rejected, and we can see that in how he shackles the industry with endless regulations.
As a result, Canada is losing out on millions of dollars daily, and billions in investment has fled our nation.
It’s a growing disaster, and Trudeau is doing his best to pretend it isn’t even happening as he throws Western Canadians under the bus.
Photos – YouTube